An ATM placement can make a great deal of a difference to a retail business in a plethora of ways. Here are the top five benefits of installing an ATM in retail and how it can improve the performance of a business in terms of sales, customers, competition, and profits.
1. Pulls customers like a magnet
Merchants are bound to pull potential customers like a magnet with ATM’s placed in retail locations and advertised properly. Many customers today prefer cash transactions over credit cards mostly because of the increasing number of cyber-crime cases. However, carrying cash all the time is often not feasible. So, many buyers prefer to draw money through ATM at the time of purchase. Having an ATM inside a store, can attract as well as facilitate cash buyers.
Studies show that when prospects enter the store to use the ATM machine, they are most likely to spend up to 25 percent of the cash withdrawal at the same store where the ATM is placed. This means that ATM placement will not only increase foot traffic but will also increase sales.
2. More Revenues and Profits
Another great benefit of installing an ATM in a retail store is that it acts as a revenue driver. Not only through sales but, through many other ways too. For example, a merchant would already know the fees that the customer has to pay for credit or debit card purchases. This fee is variable on total purchase price. Although it is small, it adds up. However, cash only transactions with an installed ATM would eliminate card fees thereby improving profit margin.
The merchant can set a transaction fee on the ATM to charge customers when they draw money. This fee goes directly to the retail owner, providing an additional stream of revenues.
3. Gain a Competitive Edge
The retail industry is booming and growing excessively competitive. To stay ahead of the competition, retail must deliver excellent shopping experiences and services to customers. With an ATM placement, retail can cater to more customers as some may want to use the ATM as they may not have cash in hand to make purchases. So, instead of leaving the store to draw money, they can easily make transactions within the store and buy their desired products with ease.
4. No Risk to Customers
The increasing number of cases related to money snatching from ATM users and even ATM thefts is alarming. However, an ATM inside a store, customers can easily withdraw money from the machine without any risk. This most certainly contributes to a great customer shopping experience as customers get to make cash transactions and shop without any worries, stress or risk. They have the peace of mind that they will not be robbed. And that is what customers want. They want to enjoy a stress-free shopping experience which gives them the flexibility, the power, and the convenience to choose their choice of payment mode.
5. Happy Customers Means More Business
Having an ATM installed in retail, business are giving customers the convenience to select their choice of payment mode. This convenience translates into happy customers. And statistics show that on average, happy customers tell approximately 9 people about their experiences with a company. This helps find new customers and sell more to existing customers.
Good customer experience further helps in creating buzz. Studies show that most people would like to share their good and bad experiences with a business online through tweets, Facebook and online reviews. This exposure is great for a retail business because 81 percent of the US population uses social networks translating into 207 million people.